11-28-2018 Council Packet - Laserfiche WebLink

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545836v1 SEL VA265-10 Date: November 26, 2018 To: Chris Heineman, City Administrator, City of Little Canada cc: Catherine Courtney, Esq. From: Sofia E. Lykke Re: Host Approval for Tax-Exempt Obligations to Be Issued by the City of Vadnais Heights, Minnesota AFSA Building Company, a Minnesota nonprofit Company (the “Company”), has proposed that the City of Vadnais Heights, Minnesota (the “City of Vadnais Heights”) issue revenue obligations (the “Bonds”) in an estimated aggregate principal amount not to exceed $13,000,000, under Minnesota Statutes, Sections 469.152 through 469.1655, as amended, and Minnesota Statutes, Section 471.656, as amended (collectively, the “Act”). The proceeds derived from the sale of the Bonds are proposed to be loaned to the Company (the “Loan”) pursuant to the terms of a loan agreement or other revenue agreement (the “Loan Agreement”) between the City of Vadnais Heights and the Company. A portion of the proceeds of the Loan will be used by the Company to finance the acquisition, renovation, and equipping of an approximately 30,000 square foot existing building located at 2925 Country Drive in the City of Little Canada, Minnesota (the “City”) for use as a public charter school for students in pre-kindergarten through eighth grade (the “Project”), to be owned by the Company and leased to and operated by AFSA High School, doing business as Academy for Sciences & Agriculture (formerly The Agricultural and Food Sciences Academy), a Minnesota nonprofit Company (the “School”). The remaining proceeds of the Loan will be used to (i) redeem and prepay certain outstanding bonds issued by the City of Vadnais Heights in 2004, thereby refinancing the acquisition, construction, and equipping of an approximately 45,000 square foot grade nine through twelve education facility located at 100 East Vadnais Boulevard in the City of Vadnais Heights; (ii) fund a debt service reserve fund; (iii) pay a portion of the interest on the Bonds; and (iv) pay a portion of the costs of issuing the Bonds. Even though the City is not being asked to issue the Bonds, the City must nevertheless take certain actions in order for the Bonds to be issued by the City of Vadnais Heights. The Company requests that the City Council (the “Council”) of the City grant “host approval” for the issuance of the Bonds by the City of Vadnais Heights, a portion of the proceeds of which will be used to finance the Project located in the City. The Company estimates that the Project will add approximately thirty-nine new full-time jobs in the City over the next three years. The City Council of the City of Vadnais Heights is anticipated to provide final approval to the issuance of the Bonds on December 4, 2018. At the City Council meeting on November 28, 2018, the Council is